The Dow Jones Industrial Average today gained 619 points, bouncing back from yesterday's record-breaking sell-off and marking the largest one-day leap since November 2011. The Nasdaq surged more than 4.2% thanks to a massive jump in shares of Google Inc. (Nasdaq: GOOG, GOOGL). This morning, an upgrade by Goldman Sachs Group Inc. (NYSE: GS) to the investment firm's "conviction buy" list sent Google stock surging more than 7.7%. Goldman set Google's price target at $800 per share, a 28% premium over today's closing price.
The S&P 500 Volatility Index (VIX), the market's fear gauge, fell 16% on the day.
Today's Top Stock Market News
Stock Market News:Gold prices today fell more than 1.5% as U.S. equities climbed. The markets surged despite another volatile trading session in China this morning. Positive economic data provided some relief for weary traders and expectations that the U.S. Federal Reserve will raise interest rates continue to fade. In a speech today, New York Fed President William Dudley said the argument for a September rate hike seemed "less compelling" than sentiment was just two weeks ago. Meanwhile, William Strauss, Senior Economist and Adviser to the Chicago Federal Reserve, said during an investment conference that Chicago Federal Reserve Bank President Charles Evans and his team of economists do not wish to rush an interest rate hike next month.
Oil Moves: Domestic WTI oil prices remain near six-and-a-half year lows. WTI crude prices dipped nearly 1% to reach $38.92 per barrel. Meanwhile, Brent oil prices added 0.8% to $43.56 per barrel. Money Morning Global Energy Strategist Dr. Kent Moors anticipates that oil prices will rise in the fourth quarter as merger and acquisition activity picks up over the rest of 2015.
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On Tap Thursday: Tomorrow, investors will look into weekly jobless claims and an update on natural gas inventories in the United States. In addition, the annual two-day Jackson Hole symposium kicks off today, but Federal Reserve Chairwoman Janet Yellen will not be attending. The event is typically where the U.S. central bank sets its agenda for the final four months of the year, and investors are anxious to determine if the event will provide any insight into whether the Fed will raise interest rates in September or at all in 2015. Companies reporting earnings include Tiffany & Co. (NYSE: TIF), GameStop Corp. (NYSE: GME), Splunk Inc. (Nasdaq: SPLK), Dollar General Corp. (NYSE: DG), Aeropostale Inc. (NYSE: ARO), J.M. Smucker Co. (NYSE: SJM), and Smith & Wesson Holding Corp. (Nasdaq: SWHC).
Stocks to Watch: AAPL, ANF, EXPR, NKE, SLB, CAM
Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were up more than 5.6% as the tech giant added gains for the second straight trading session. Prior to yesterday's bounce, Apple stock had declined for five consecutive trading sessions. The company continues to fight back against broader concerns that weakness in the Chinese economy might affect its sales outlook.
Stocks to Watch No. 2, ANF: Shares of Abercrombie & Fitch Co. (NYSE: ANF) were up more than 9.6% after the company reported stronger than expected quarterly revenue and a smaller loss than Wall Street had forecast. During its announcement, the clothing retailer was confident about its ability to turn around its Hollister brand.
Stocks to Watch No.3, EXPR: Shares of Express Inc. (NYSE: EXPR) were up more than 20% after the firm beat second-quarter expectations and raised its 2015 outlook. The retail company said profits more than tripled in its most recent quarter, while revenue and same-store sales beat Wall Street analyst projections.
Stocks to Watch No. 4, NKE: Shares of Nike Inc. (NYSE: NKE) gained 5% after the company received an upgrade from Susquehanna Financial Group from a rating of neutral to positive. The investment firm said a recent downturn in company shares made Nike an attractive investment given the firm's global growth sustainability and improving operations. The stock is still a little less than 8% off from its 52-week high of $117.72.
Stocks to Watch No. 5, SLB: As Money Morning Global Energy Strategist Kent Moors predicted, merger and acquisition activity is going to be one of the best ways to make money right now in the energy sector. This morning, oilfield services giant Schlumberger Ltd. (NYSE: SLB) announced plans to purchase equipment products giant Cameron International Corp. (NYSE: CAM) for $12.7 billion. This is a 56.2% premium over yesterday's closing price for Cameron stock. Shares of Cameron were up more than 41% on Tuesday, while SLB stock was down 3.4%. As Kent explains, the low-price environment has primed the oil sector for a wave of mergers. And this will create a new group of heavyweight companies that will lead the market into a "new energy age." To learn how to identify this new class of must-own energy stocks, read Kent's insight here.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.
